Traditional auctions have been a tool of commerce for many years and the advantages of auctions are well known. Auctions are arguably the purest form of market driven commerce in a trade based economy. While allowing a provider an opportunity to obtain the highest price that a market may bear for his or her goods, the consumer has an opportunity to purchase goods at a fair price. The auction concept is simple, yet an auction has proven to be very popular because it may result in a win-win scenario for both providers and consumers. In an auction environment, one who wishes to trade goods for monetary value, simply solicits bids from those who wish to engage in trade for goods. When the bidding process is complete, either after expiration of a predetermined time or when bidding has ceased, the person offering the highest bid wins the opportunity to complete the trade transaction.
Since the advent of the world-wide web, auctions have expanded into a level of technology and complexity, but the concept has remained largely the same as the traditional auction. However, auctions are now no longer bound by geography and anyone who wishes to participate may do so with very little experience or knowledge. Online auctions have also become a profitable alternative to the limited distribution of a garage sale.
In the early years of online auctions, auction sites such as eBay® centered its business on consumers wishing to conduct business with other consumers (C2C). Later, on-line auctions began to appeal to business owners as an efficient and low cost system and/or method to market their products and move inventory to consumers (B2C). More recently, businesses seeking to conduct commerce with other businesses (B2B) are utilizing auction sites, such as eBay®, to participate in auctions for items ranging from office furniture to computing equipment. However, auctions are still being used simply as an ad hoc means of moving assets. As such, a strong need exists to provide an ongoing system and method for the management, scheduling and pricing of professional services.
Traditionally, auctions have been structured for trade of material goods for a currency value. In recent years, however, online auctions have evolved to serve a number of different markets. Reverse auctions, for example, allow suppliers of goods or services to bid on contracts. Also, online auctions accepting bids utilizing various forms of payment (e.g., loyalty points, frequent flyer miles), and even barter agreements are becoming more prevalent.
While most online auctions today remain primarily targeted toward goods, the service industries are increasingly discovering the value of online auctions. Consumers are increasingly being invited to participate in auctions for vacations, airfare, hotels, golf packages, and the like. Priceline.com®, for example, has helped change the travel industry by offering travelers an opportunity to purchase airfare, hotel reservations, car rentals, etc. at the lowest possible price or a price “selected” by the traveler. However, the Priceline.com model differs from an auction model in that, while it allows the consumer to place an offer or bid, consumers are not directly competing against other consumers as in a true auction environment.
In addition, while conventional auctions have been adapted for business to business auction transactions, the service based industries have only recently entered the business to consumer market in the form of online auctions. For the most part, businesses with markets residing primarily or exclusively with other businesses, remain confined to conventional servicing. Conventional servicing often relies on manual administration, or perhaps voice response, for scheduling administration. Conventional cost structure management often relies on market analysis, which is typically more expensive and slower. However, conventional services do not typically allow automatic online scheduling and pricing of professional services with built in demand forecasting and revenue management. Moreover, any existing scheduling processes are not sufficiently automated, and are expensive to administer.
Because of the growing acceptance and even preference toward auction based commerce, a need exists for a practical and efficient way for service based industries to offer professional services for auction. Moreover, market fluctuations over very short durations make it difficult for the service industry to assess the market for the purpose of structuring professional service offerings and fees. As such, a need exists for rapidly assessing and structuring professional service fees. A calendar auction system would produce advantages to both the provider and consumer in that professional services are usually needed during varying durations of time because demand for such services can be sporadic and unpredictable. As a result, a provider at times may experience periods of low demand, while at other times, may have difficulty staffing projects during periods of very high demand. Also, as a result of market fluctuations, consumers may find it difficult to locate professional services during peaks in demand. Therefore, not only would an auction provide an opportunity to obtain the highest possible rate for such services, but would prove to be an invaluable analysis tool in determining market demand and pricing structures.